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To: American Spirit who wrote (80040)	7/12/2001 12:27:07 AM
From: Larry Brubaker	Read Replies (2) \| Respond to of 99985

<<...the burn rate going forward is 22-25 million a Q and minimum revenues are about the same...In fact burn rate should not cut into cash at all if their projections are correct>> I believe your are confusing "burn rate" with "expenses." If revenue equals expenses (which seems to be what your are implying), there is no burn rate. By definition, a burn rate is expenses in excess of revenue. If the company says the burn rate going forward is 22-25 million a quarter, that means they will spend 22-25 million more than they take in. They will "burn" 22-25 million of cash.

To: American Spirit who wrote (80040)	7/12/2001 2:29:39 AM
From: JOHN W.	Read Replies (4) \| Respond to of 99985

Don't waste your time. Zeev's dishonesty to promote his positions is unfortunate, but common. A.S., with a few more positive tech earning, we could rally well past the May highs. I feel sorry for the shorts, but it was a dull mkt with this low vol, sideways action. JMHO

To: American Spirit who wrote (80040)	7/12/2001 8:55:41 AM
From: Zeev Hed	Respond to of 99985

If you take your own figure ($100 MM cash left) in the Quarter ending June, and a burn rate going forward of $22 MM per quarter, then cash will be sufficient for about 4 quarters. Let see the actual figures for the June quarter, particularly the gross profit margins (the March quarter at 4.5%), the SG&A figures (March quarter at around $33 MM) to determine where they go from here. Did you expect the CEO to tell you, "look, we are not really sure how much of our working capital we can really collect on", then you have not heard enough CEO's of companies in financial difficulties. Zeev